European Central Bank Governing Council member Boris Vujcic indicated that, despite recent increases following ceasefire developments, energy prices overall remain close to baseline scenario assumptions.
The Croatian official stated Monday in Zagreb, "Although oil and gas prices have risen since last week, we are still very close to the baseline scenario."
However, this view appears to diverge somewhat from other policymakers' assessments. Recent comments from other officials suggest the situation in the Middle East is evolving in line with the ECB's "adverse scenario." Frankfurt-based officials continue to evaluate responses to rising energy costs, with markets currently pricing a 50% probability of an interest rate hike this month.
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